diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java
index 52cd96b74..b81ed0023 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/loanschedule/domain/AbstractLoanScheduleGenerator.java
@@ -221,6 +221,7 @@ public abstract class AbstractLoanScheduleGenerator implements LoanScheduleGener
                     loanApplicationTerms.updateAnnualNominalInterestRate(variation.getTermValue());
                 }
             }
+            isFirstRepayment = false;
         }
 
         while (!outstandingBalance.isZero() || !disburseDetailMap.isEmpty()) {